Owning a residential rental property might be a great way to generate money, but it takes a lot of work. Making money from a real estate investment involves many moving elements, and property owners may put themselves at risk if they don’t have the experience. Furthermore, it tends to be time-consuming – if you can’t commit your time and energy to your rental, real estate success will come slowly (or it could never come at all).
That’s why even the most experienced rental property owners opt to work with a management company. While it is an additional cost, companies bring a ton of value to the table and allow owners to distance themselves from day-to-day operations. If you’re wondering if a property management company is worth it, and if they can actually save you time and money, we’ve got you covered. That’s what we’ll find out today.
#1 Shorter Unoccupied Periods
No matter how budget-friendly your home is, there’s no guarantee that it will always be rented out. The sad part is you lose money every time a property sits vacant. During the time that it’s empty, you’ll still have to pay property taxes, mortgage, and more.
To avoid vacancies (or at least to shorten vacant periods), a property management company will aim to fill vacant units the soonest. In most cases, the company can get your property leased within a couple of days, as opposed to many months. Plus, in contrast to the conventional practice of waiting for tenants to come to you, many companies already have a pool of prospective tenants from which to choose.
Experienced property management companies are also experts at tenant retention. In that way, you won’t always have to deal with vacant units.
#2 Great Tenants Through Effective Marketing
If you were to find tenants on your own, there’s a good chance you’ll list your property on the wrong platforms, and in turn, rent to the wrong tenants. You’ll also be limited in terms of where you’ll post. Most self-managing rental owners list only on the first few websites they find on Google.
But with the help of a professional property management company, you’ll be able to rent to the best tenants in no time. Your properties will be featured on a variety of websites. Furthermore, companies can identify who to best rent your property to, which allows them to choose the ideal marketing methods. For example, if your property is best suited to 20-to-30-year-olds, your company will know to focus its efforts on social media sites like Facebook.
This not only gives you more time to do the things that matter to you, but it also takes off the pressure of finding great tenants who will pay their rent on time, all the time.
#3 Strict Rent Collection and Penalty Enforcement
Many new property owners are unaware of how challenging it is to collect rent from tenants. Even if your tenants seem responsible at first, some of them may be unable to pay their rent down the line. When this occurs, your cash flow will suffer, and you’ll likely need to pay out of pocket for expenses such as maintenance, property taxes, and more.
Rent collection will be considerably manageable when you hire a property management company. They use a variety of tools to make rent collection more convenient. Additionally, they will be the ones to enforce the repercussions for late rent payments. In this way, you can avoid awkward conversations with your tenants, especially if you’re worried about being seen as the “bad guy”.
#4 Set Boundaries Between Yourself and Tenants
You’ll be able to set a barrier between yourself and your tenant when you work with a company. You won’t have to put up with your tenant’s excuses, endlessly follow up on their late rent payments, and if worse comes to worst, evict them. Your dedicated point person will handle that for you – and more.
Plus, property managers won’t be easily swayed because they’ve been trained to deal with troublesome (and untruthful) tenants. If you were to deal with tenant issues on your own, you’d probably be susceptible to their lies. If you become too lenient, your tenants will likely learn to take advantage of you. Property management companies are the impartial party you can count on.
#5 Less Time Spent on Maintenance and Repairs
A common mistake that new property owners make is thinking they can handle tenant complaints. The reality is that many rental owners aren’t too keen on dealing with maintenance on their own. It’s simply too time-consuming. Not only will you have to be at your tenant’s beck and call, but you’ll also have to build a network of reliable contractors.
A good property management company will have a process to make sure maintenance tasks get done regularly. With their property maintenance plan, they can ensure your rental stays in tip-top shape so you won’t have to deal with issues down the road. Maintenance is also the key to making sure your property maintains (or even improves) its value.
#6 Prevent Legal Issues
As a landlord, you need to abide by all federal, state, and local legislation when dealing with tenants, otherwise, you’ll face the repercussions. The problem is that, like most people, you probably don’t have the time to read and understand laws such as the Fair Housing Act (FHA). A professional property management company is well-versed in the law and will make sure your property is operated with full compliance. However, in case you do find yourself in a lawsuit, your company will refer you to their in-house counsel.
Run Your Rental Efficiently With Luxury Property Care
A property management company can help you save time and money in more ways than one. If you own a residential rental in South Florida, make sure to partner with the experts at Luxury Property Care. We’ll be beside you from day one to ensure your rental property is run as smoothly as possible. Call us at (561) 944 – 2992 to discuss our property management plans and fees today. You can also complete our contact form to request a quote for our services.